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Security for costs against supposedly impecunious claimants—court’s approach, particularly in light of the COVID-19 pandemic (International Pipeline Products v IK UK)

Published on: 01 July 2020
Published by: LexisPSL
  • Security for costs against supposedly impecunious claimants—court’s approach, particularly in light of the COVID-19 pandemic (International Pipeline Products v IK UK)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Case details

Article summary

Dispute Resolution analysis: The court was asked to determine whether there was (pursuant to the test in CPR 25.13(2)(c)) reason to believe that the claimant would be unable to meet any adverse costs order. In finding that there was no such reason to believe that would be the case, the court provided helpful guidance on how to construe the applicable test, particularly in the context of the economic uncertainty caused by the coronavirus (COVID-19) pandemic. The decision also contains useful obiter comments in relation to the supposed difficulties of enforcement in foreign jurisdictions of both costs orders, and contractual obligations in relation to costs (such as those provided by group companies of the claimant). The court’s findings on all of these issues exhibit the practical approach the court will take to them if presented with sufficient context to do so. Written by Leo Kitchen, senior associate at Quinn Emanuel Urquhart & Sullivan UK LLP. or take a trial to read the full analysis.

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